Question

(10) 13. The time required to complete a project is normally distributed with a mean of 50 weeks and a standard deviation of 5 weeks. The construction company must pay a penalty if the project is not finished by the due date in the contract. If a construction company bidding on this contract puts in a due date of 50 weeks, what is the probability that they will finish on or before the due date? (Suggest you draw the Normal Distribution Curve).

Answer 1

Here, we need to first calculate the z-score.

o = Z n - X

Mean = 50, S.D = 5

X = 50

z = (50-50)/5 = 0

A z-score of 0 gives 0.5 in the table.

It means the probability of it getting finished on or before 50 weeks is 0.5.